Ejendomsskat

Ejendomsskat is a municipal tax on real estate in Denmark. It funds local services and infrastructure, such as schools, roads and waste management. The tax is administered by municipalities and is based on the property's assessed value, known as ejendomsværdi, as well as the land value, grundværdi.

Two separate components form the local property tax: a tax on the building value (ejendomsskat) and a tax on the land value (grundskyld). Each component uses its respective base value and a rate set by the municipality within national guidelines. Consequently, the tax burden differs widely between municipalities and over time.

Valuation and calculation: The ejendomsværdi and grundværdi are determined by the municipality through a valuation process, and may be updated periodically. The total property tax for a property is the sum of the two taxes: ejendomsværdi × rate (building) plus grundværdi × rate (land).

Payment and administration: Taxes are billed annually by the municipality, with options for installments. Homeowners receive a tax statement and the revenue supports local services. Some properties may qualify for reliefs or exemptions under certain conditions, but rules differ by municipality and property type.

In recent decades, Danish property taxation has undergone reforms and adjustments reflecting housing policy and local funding needs. The system remains a major source of municipal revenue and a common topic in political debates.

See also: Grundskyld; Ejendomsvurdering.